SUNation Energy, Inc. Segments Disclosure
The Company’s segment structure reflects how management makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the residential and commercial businesses with a geographical focus. The SUNation NY segment provides solar power, battery storage, and related services to customers in New York. The Hawaii Energy Connection (“HEC”) segment provides the same products and services to residential and commercial customers in Hawaii. The Company’s CODM is represented by a committee that includes the Company’s CEO, CFO, and COO. The CODM regularly reviews discrete financial information for SUNation NY and HEC in deciding how to allocate resources and in assessing performance. Corporate and other represents the unallocated corporate business activities and corporate shared services, which support the Company’s operating segments, along with operating and other expenses related to legacy CSI assets.
The CODM committee evaluates performance for both reportable segments based on segment revenue, gross profit, and operating (loss) income before income taxes. When using these metrics, the CODM committee considers forecast-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The CODM committee also uses these metrics for evaluating pricing strategy to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.
The Company had no customers that comprised more than 10% of the Company's consolidated revenues during either of the years ended December 31, 2025 and 2024.
Summarized financial information for the Company’s reportable segments are presented and reconciled to consolidated financial information in the following tables, including a reconciliation of segment earnings to income before income taxes. This reconciliation also represents the significant expense categories reviewed by the CODM.
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| Year ended December 31, 2025 | ||||||||||
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| Corporate and |
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| SUNation NY |
| HEC |
| Other |
| Total | ||||
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Sales |
| $ | 49,600,311 |
| $ | 22,305,216 |
| $ | — |
| $ | 71,905,527 |
Cost of sales |
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| 29,433,948 |
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| 14,927,366 |
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| — |
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| 44,361,314 |
Gross profit |
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| 20,166,363 |
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| 7,377,850 |
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| — |
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| 27,544,213 |
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Operating expenses: |
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Selling, general and administrative expenses |
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| 16,237,256 |
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| 4,766,477 |
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| 5,976,017 |
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| 26,979,750 |
Amortization expense |
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| 812,500 |
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| 1,425,000 |
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| — |
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| 2,237,500 |
Total operating expenses |
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| 17,049,756 |
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| 6,191,477 |
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| 5,976,017 |
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| 29,217,250 |
Operating (loss) income |
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| 3,116,607 |
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| 1,186,373 |
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| (5,976,017) |
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| (1,673,037) |
Other income (expenses): |
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Investment and other income |
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| 29,335 |
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| 13,044 |
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| 64,246 |
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| 106,625 |
Fair value remeasurement of warrant liability |
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| — |
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| — |
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| (7,531,044) |
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| (7,531,044) |
Fair value remeasurement of contingent forward contract |
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| 899,080 |
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| 899,080 |
Fair value remeasurement of contingent value rights |
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| — |
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| — |
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| 36,079 |
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| 36,079 |
Financing fees |
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| (1,294,090) |
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| (1,294,090) |
Interest expense |
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| (58,908) |
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| — |
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| (982,927) |
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| (1,041,835) |
Loss on debt extinguishment |
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| — |
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| — |
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| (343,471) |
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| (343,471) |
Other expense, net |
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| (29,573) |
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| 13,044 |
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| (9,152,127) |
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| (9,168,656) |
Operating loss from continuing operations before income taxes |
| $ | 3,087,034 |
| $ | 1,199,417 |
| $ | (15,128,144) |
| $ | (10,841,693) |
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Depreciation and amortization |
| $ | 995,472 |
| $ | 1,507,643 |
| $ | — |
| $ | 2,503,115 |
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Capital expenditures |
| $ | — |
| $ | 48,594 |
| $ | — |
| $ | 48,594 |
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Assets |
| $ | 27,437,628 |
| $ | 18,199,530 |
| $ | 2,606,962 |
| $ | 48,244,120 |
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| Year ended December 31, 2024 | ||||||||||
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| Corporate and |
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| SUNation NY |
| HEC |
| Other |
| Total | ||||
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Sales |
| $ | 39,733,362 |
| $ | 17,128,391 |
| $ | — |
| $ | 56,861,753 |
Cost of sales |
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| 24,639,695 |
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| 11,795,814 |
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| — |
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| 36,435,509 |
Gross profit |
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| 15,093,667 |
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| 5,332,577 |
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| — |
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| 20,426,244 |
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Operating expenses: |
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Selling, general and administrative expenses |
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| 15,265,443 |
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| 4,530,879 |
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| 7,257,844 |
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| 27,054,166 |
Amortization expense |
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| 812,500 |
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| 2,025,000 |
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| — |
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| 2,837,500 |
Fair value remeasurement of SUNation earnout consideration |
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| — |
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| — |
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| (1,000,000) |
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| (1,000,000) |
Goodwill impairment loss |
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| — |
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| 3,101,981 |
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| — |
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| 3,101,981 |
Intangible asset impairment loss |
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| — |
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| 750,000 |
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| — |
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| 750,000 |
Total operating expenses |
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| 16,077,943 |
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| 10,407,860 |
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| 6,257,844 |
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| 32,743,647 |
Operating (loss) income |
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| (984,276) |
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| (5,075,283) |
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| (6,257,844) |
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| (12,317,403) |
Other income (expenses): |
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Investment and other income |
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| 25,920 |
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| 17,742 |
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| 100,867 |
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| 144,529 |
(Loss) gain on sale of assets |
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| — |
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| 6,118 |
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| (6,940) |
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| (822) |
Fair value remeasurement of warrant liability |
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| — |
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| — |
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| (974,823) |
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| (974,823) |
Fair value remeasurement of embedded derivative liability |
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| — |
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| — |
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| (65,617) |
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| (65,617) |
Fair value remeasurement of contingent value rights |
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| — |
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| — |
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| 522,257 |
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| 522,257 |
Interest expense |
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| (74,507) |
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| — |
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| (3,012,943) |
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| (3,087,450) |
Loss on debt extinguishment |
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| — |
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| — |
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| (35,657) |
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| (35,657) |
Other expense, net |
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| (48,587) |
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| 23,860 |
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| (3,472,856) |
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| (3,497,583) |
Operating loss from continuing operations before income taxes |
| $ | (1,032,863) |
| $ | (5,051,423) |
| $ | (9,730,700) |
| $ | (15,814,986) |
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Depreciation and amortization |
| $ | 1,031,418 |
| $ | 2,120,364 |
| $ | 2,050 |
| $ | 3,153,832 |
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Capital expenditures |
| $ | 24,155 |
| $ | 8,630 |
| $ | — |
| $ | 32,785 |
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Assets |
| $ | 26,127,816 |
| $ | 18,150,306 |
| $ | 1,434,610 |
| $ | 45,712,732 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Apr 6, 2018 | |
| 2016 | Mar 31, 2017 | |
| 2015 | Mar 11, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.